06 10 25 Public Safety Personnel Retirement System Pension Funding Policy - Chief Financial Officer Artz

PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
PENSION FUNDING POLICY
June 10, 2025

BACKGROUND
• Arizona Revised Statute §38-863.01 requires:
• Each Governing Body shall annually adopt a pension funding 
policy for employees hired prior to July 1, 2017.
• The funding policy shall include (1) how to maintain the stability 
of contributions, (2) how and when the funding requirements 
will be met, and (3) define the funded target ratio.
• The Governing body shall formally accept the employer’s share 
of assets and liabilities, based on the actuarial report.

JUNE 2024 ACTUARIAL 
VALUATION
Funded Ratio
Unfunded 
Actuarial 
Accrued Liability
Accrued 
Liability
Assets
Trust fund
97.5%
$541,038
$21,312,340
$20,771,302
Tolleson Police
91.8%
$2,111,016
$25,770,453
$23,659,437
Tolleson Fire
94.4%
$2,652,054
$47,082,793
$44,430,739
City Totals

POLICE 6-YEAR FUNDED 
STATUS
Funded Ratio
Unfunded Actuarial 
Accrued Liability
Police
97.5%
$541,038
2024
91.5%
$1,702,202
2023
87.1%
$2,381,479
2022
85.5%
$2,471,911
2021
82.1%
$2,891,918
2020
80.2%
$2,889,685
2019

FIRE 6-YEAR FUNDED STATUS
Funded Ratio
Unfunded Actuarial 
Accrued Liability
Fire
91.8%
$2,111,016
2024
86.5%
$3,274,919
2023
87.1%
$2,795,630
2022
83.9%
$3,324,981
2021
85.8%
$2,768,440
2020
85.8%
$2,582,375
2019

KEY TAKEAWAYS
•
Required annual payments are made from operating funds.
•
The target date is to be 100% funded by 2036.
•
The City has paid an additional $2.0M payment in FY 24/25 and 
budgeted an additional $2.0M in FY 25/26 that are not reflected in the 
2024 actuarial report.
•
The Unfunded Liability has decreased by $2.8M over the past 6 years.
•
The funded ratio has improved from 80.2% in Police and 85.8% in Fire 
to 97.5% and 91.8% funded, respectively.
•
The Resolution and funding policy satisfy the requirements of Arizona 
Revised Statute §38-863.01

RECOMMENDATION
•
Staff recommends Council adopt the Resolution 
approving the PSPRS funding policy.